Journal of Revenue and Pricing Management

, Volume 16, Issue 3, pp 238–245 | Cite as

The emerging trend of hotel total revenue management

  • Chuyi Zheng
  • Gabor Forgacs
Practice Article


Total hotel revenue management has emerged in the hotel industry as a next stage in the evolution of revenue management. By integrating several revenue streams including food and beverage, function space, catering, spa, retail, golf, and others with room revenue management, total revenue management enables hotels to achieve their goal in maximizing revenue in highly competitive markets. This study investigates the practices of hotel revenue management and discusses several future trends of total revenue management. In-depth interviews were conducted with 12 revenue professionals. Current issues and challenges in hotel revenue management are discussed and recommendations are offered.


total revenue revenue management revenue streams revenue optimization hotel revenue 


  1. Abrate, G., Fraquelli, G. and Viglia, G. (2012) Dynamic pricing strategies: Evidence from European hotels. International Journal of Hospitality Management 31(1): 160–168.CrossRefGoogle Scholar
  2. Buckhiester. B. (2012) Optimizing total revenue management. Hotel News Now. Retrieved from
  3. Choi, S. (2006) Group revenue management a model for evaluating group profitability. Cornell Hotel and Restaurant Administration Quarterly 47(3): 260–271.CrossRefGoogle Scholar
  4. Collins, M. and Parsa, H.G. (2006) Pricing strategies to maximize revenues in the lodging industry. International Journal of Hospitality Management 25(1): 91–107.CrossRefGoogle Scholar
  5. Enz, C.A., Canina, L., and Lomanno, M. (2009) Competitive hotel pricing in uncertain times. The Center for Hospitality Research, Cornell University 9(10): 1–17.Google Scholar
  6. Freed, J.Q. (2012) Total revenue management is the future. Hotel News Now. Retrieved from
  7. Gu, Z. and Caneen, J.M. (1998) Quadratic models for yield management in hotel rooms operation. Progress in Tourism and Hospitality Research 4(3): 245–253.CrossRefGoogle Scholar
  8. Hung, W.T., Shang, J.K. and Wang, F.C. (2010) Pricing determinants in the hotel industry: Quantile regression analysis. International Journal of Hospitality Management 29(3): 378–384.CrossRefGoogle Scholar
  9. Kim, W. G., Cho, M. and Brymer, R.A. (2013) Determinants affecting comprehensive property-level hotel performance: The moderating role of hotel type. International Journal of Hospitality Management 34: 404–412.CrossRefGoogle Scholar
  10. Kimes, S.E. (1999) Implementing restaurant revenue management: A five-step approach. Cornell Hospitality Quarterly 40(3): 16–21.Google Scholar
  11. Kimes, S.E. (2008) The role of technology in restaurant revenue management. Cornell Hospitality Quarterly 49(3): 297–309.CrossRefGoogle Scholar
  12. Kimes, S.E. (2010) The future of hotel revenue management. Journal of Revenue & Pricing Management 10(1): 62–72.CrossRefGoogle Scholar
  13. Mandelbaum, R. (2011) Hotel food and beverage locals up lounges down. Hotel, Travel and Hospitality News. Retrieved from
  14. Palamar, L.A. and Edwards, V. (2007) Dynamic pricing friend or foe. USA: BTE Tourism Training and Consulting, Buckhiester Management, pp. 1–14.Google Scholar
  15. Quain, W.J. (1992) Analyzing sales-mix profitability. Cornell Hotel and Restaurant Administration Quarterly 33(2): 57–62.Google Scholar
  16. Steed, E. and Gu, Z. (2005) An examination of hotel room pricing methods: Practised and proposed. Journal of Revenue and Pricing Management 3(4): 369–379.CrossRefGoogle Scholar
  17. Stuart-Hill, T. (2014) Top 10 revenue management issues for 2014 and beyond. Retrieved from
  18. Thompson, G.M. (2003) Optimizing restaurant-table configurations: Specifying combinable tables. The Cornell Hotel and Restaurant Administration Quarterly 44(1): 53–60.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd 2016

Authors and Affiliations

  1. 1.Ted Rogers School of Hospitality and Tourism ManagementRyerson UniversityTorontoCanada

Personalised recommendations